Mattel has filed a lawsuit alleging that MGA Entertainment fraudulently transferred hundreds of millions of dollars to keep Mattel from collecting on a judgment.
The lawsuit alleges that MGA's high profile chief executive, Isaac Larian, and his family members, received $430 million between 2004 and 2008 to keep the money from MGA's creditors, including Mattel.
Susan Hale, a spokeswoman for MGA, says similar claims were dismissed in federal court.
The lawsuit is the latest court instalment in an epic litigation over who owns the Bratz line of dolls.
An appeals court recently overturned a 2008 verdict that awarded Mattel $100 million and ownership of the doll line. A retrial begins in January.